Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication. The company provided the following estimates at the beginning of the year. Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Job D-70 Direct materials cost Direct labor cost Machine-hours Molding $ 370,000 $ 220,000 14,000 Molding 20,000 $ 720,000 $ 3.00 During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs- Job D-70 and Job C-200. It provided the following information related to those two jobs: Fabrication $ 320,000 $ 180,00 6,000 Total $ 690,000 $ 400,000 20,000 Job C-200 Direct materials cost Holding $ 200,000 $ 180,000 Fabrication $ 200,000 $ 240,000 29,000 Direct labor cost Machine-hours 6,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Fabrication 35,000 $ 200,000 $ 2.00 Total $ 400,000 $ 420,000 35,000 Total 55,000 $ 920,000 Required: 1. Assume Delph uses departmental predetermined overhead rates based on machine-hours. a. Compute the departmental predetermined overhead rates. b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200 c. If Delph establishes bid prices that are 150% of total manufacturing cost, what bid prices would it have established for Job D-70 and Job C-200? d. What is Delph's cost of goods sold for the year?
Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication. The company provided the following estimates at the beginning of the year. Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Job D-70 Direct materials cost Direct labor cost Machine-hours Molding $ 370,000 $ 220,000 14,000 Molding 20,000 $ 720,000 $ 3.00 During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs- Job D-70 and Job C-200. It provided the following information related to those two jobs: Fabrication $ 320,000 $ 180,00 6,000 Total $ 690,000 $ 400,000 20,000 Job C-200 Direct materials cost Holding $ 200,000 $ 180,000 Fabrication $ 200,000 $ 240,000 29,000 Direct labor cost Machine-hours 6,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Fabrication 35,000 $ 200,000 $ 2.00 Total $ 400,000 $ 420,000 35,000 Total 55,000 $ 920,000 Required: 1. Assume Delph uses departmental predetermined overhead rates based on machine-hours. a. Compute the departmental predetermined overhead rates. b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200 c. If Delph establishes bid prices that are 150% of total manufacturing cost, what bid prices would it have established for Job D-70 and Job C-200? d. What is Delph's cost of goods sold for the year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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![Required information
[The following information applies to the questions displayed below.]
Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication. The
company provided the following estimates at the beginning of the year:
Machine-hours
Fixed manufacturing overhead cost
Variable manufacturing overhead cost per machine-hour
Job D-70
Direct materials cost
Direct labor cost
Machine-hours
During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs-
Job D-70 and Job C-200. It provided the following information related to those two jobs:
Molding
$ 370,000
$ 220,000
14,000
Molding
$ 200,000
$ 180,000
6,000
Job C-200
Fabrication
Direct materials cost
Total
$ 400,000
$ 200,000
Direct labor cost
Machine-hours
$ 240,000
29,000
$ 420,000
35,000
Delph had no underapplied or overapplied manufacturing overhead during the year.
Molding Department
Fabrication Department
Molding
20,000
$ 720,000
$ 3.00
Fabrication
$ 320,000
$ 180,00
6,040
rates
Total
$ 690,000
$ 400,000
20,000
Required:
1. Assume Delph uses departmental predetermined overhead rates based on machine-hours.
a. Compute the departmental predetermined overhead rates.
Fabrication
35,000
$ 200,000
$ 2.00
per MH
per MH
Total
b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200
c. If Delph establishes bid prices that are 150% of total manufacturing cost, what bid prices would it have established for Job D-70 and
Job C-2007
d. What is Delph's cost of goods sold for the year?
Complete the question by entering your answers in the tabs given below.
55,000
$ 920,000
Required 1A Required 1B Required IC Required 10
Assume Delph uses departmental predetermined overhead rates based on machine-hours. Compute the departmental
predetermined overhead rates. (Round the final answers to 2 decimal places.)
Predetermined overhead](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd00afb28-c960-457a-a05f-59208ab072c5%2F763cfcbf-c12a-41a1-848b-b107a716f53c%2Fkiw08la_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication. The
company provided the following estimates at the beginning of the year:
Machine-hours
Fixed manufacturing overhead cost
Variable manufacturing overhead cost per machine-hour
Job D-70
Direct materials cost
Direct labor cost
Machine-hours
During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs-
Job D-70 and Job C-200. It provided the following information related to those two jobs:
Molding
$ 370,000
$ 220,000
14,000
Molding
$ 200,000
$ 180,000
6,000
Job C-200
Fabrication
Direct materials cost
Total
$ 400,000
$ 200,000
Direct labor cost
Machine-hours
$ 240,000
29,000
$ 420,000
35,000
Delph had no underapplied or overapplied manufacturing overhead during the year.
Molding Department
Fabrication Department
Molding
20,000
$ 720,000
$ 3.00
Fabrication
$ 320,000
$ 180,00
6,040
rates
Total
$ 690,000
$ 400,000
20,000
Required:
1. Assume Delph uses departmental predetermined overhead rates based on machine-hours.
a. Compute the departmental predetermined overhead rates.
Fabrication
35,000
$ 200,000
$ 2.00
per MH
per MH
Total
b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200
c. If Delph establishes bid prices that are 150% of total manufacturing cost, what bid prices would it have established for Job D-70 and
Job C-2007
d. What is Delph's cost of goods sold for the year?
Complete the question by entering your answers in the tabs given below.
55,000
$ 920,000
Required 1A Required 1B Required IC Required 10
Assume Delph uses departmental predetermined overhead rates based on machine-hours. Compute the departmental
predetermined overhead rates. (Round the final answers to 2 decimal places.)
Predetermined overhead
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